TORONTO, August 28, 2006 - VenGrowth Private Equity Partners Inc. and its affiliates ("VenGrowth"), a leading private equity firm with over $1 billion in assets under management, today announced it has successfully exited its investment in Quake Technologies (Canada) Inc. ("Quake") following the completion of an acquisition by Applied Micro Circuits Corp. ("AMCC"). Under the terms of the agreement, AMCC [NASDAQ: AMCC] acquired all outstanding shares of Quake, in a deal worth approximately $US80 million.

VenGrowth was the largest venture stakeholder in Ottawa-based Quake, investing a total of $13.4 million in the company through The VenGrowth Investment Fund Inc. and The VenGrowth II Investment Fund Inc. in December 2003. VenGrowth was represented on the Quake Board of Directors and played an active role in helping the company become leader in the 10 Gigabit Ethernet ("10GE") technology market.

"Quake's success is based on its anticipation of the 10GE market and having a first-rate team determined to succeed in that space," said Paul Smelters, VenGrowth Investment Director. "AMCC is a global leader in network and communication solutions, and its acquisition of Quake makes them number one in 10GE as well."

"VenGrowth is proud to be part of this success story and Quake's technology leadership is a prime example of the kind of success Canadian startups can achieve when they leverage the world-class expertise available in the Ottawa region," added Mr. Smelters.

VenGrowth is the pre-eminent venture investor in the Ottawa region, with over $296 million currently invested in Ottawa-area companies.

Quake is a semiconductor company that designs and supplies high-speed devices for what is called the "physical layer" of telecommunications networks. Quake's chips are integrated into 10GE optical modules (manufactured by companies such as Intel and Opnext) which are then used in networking products such as Cisco's Ethernet switches.
 
About VenGrowth
With over $1 billion in assets under management, VenGrowth is Canada's largest private equity and venture capital firm managing both retail and institutional assets. Since 1982, VenGrowth's accomplished private equity managers have invested over $1.1 billion in over 180 companies, building a strong track record of successful portfolio transactions. These investments have been made on behalf of over 180,000 individual investors and leading pension funds, banks, insurance companies and family foundations. Portfolio companies benefit from VenGrowth's substantial experience, resources, and hands-on investment style. VenGrowth's offices are located in Toronto (Corporate Headquarters) and Ottawa. For more information, please visit www.vengrowth.com.

For further information:
Angus Fisher
Media Relations
VenGrowth Asset Management Inc.
(416) 628 9255
afisher@vengrowth.com